9911796707
TMI Blog2017 (1) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income-tax - 7 erred in initiating proceedings under section 263 of the Income-tax Act although the Assessment Order was neither erroneous nor prejudicial to the interest of the Revenue for a simple reason no loss of Revenue was involved since the assessment was completed under section 115JB of the Income-tax Act on the total income assessed under section 115JB at Rs. 1,34,08,297/- which was much more than the business loss of Rs. 62,81,769/- assessable under normal provisions of the Act. 2. Without prejudice to above, the learned Commissioner of Income-tax erred in holding that the appellant is not entitled to vacancy allowance under section 23(l)(c) although the appellant duly fulfilled the conditions laid down in section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assesse filed its return of income for relevant AY on 24.09.2011 declaring total income of Rs. Nil. The assessment u/s 143(3) of the Act was completed on 28.11.2013 determining the total loss of Rs. 62,81,769/- and income u/s 115JB at Rs. 1,34,08,297/-. The assessment order was revised by Principal Commissioner of Income-tax (CIT) holding that Assessing Officer (AO) failed to carry out necessary enquiry without examining all aspect which were required to look into for arrival the correct taxable income, thus, the order of AO is erroneous and prejudicial to the interest of Revenue. The ld. CIT revised the order of AO holding as under: i) the assessee has shown rental income of Rs. 8,97,052/- from Oberoi Accommodation, Gala etc. an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the rent from Oberoi Woods Accommodation Property of Rs. 5,21,451/- has not been included under the head "Income from House Property" as this property is held as stock-in-trade is included in the head " Other Income" in Schedule-J to the P&L A/c. The expenses incurred on account of Oberoi Woods Expenses and Rs. 5,94,000/- being interest to ICICI Home Loan was correctly debited to the P&L A/c. The contention of assessee was not accepted holding that assessee has shown Oberoi Woods Accommodation Property as stock-in-trade under Schedule- K & N of its balance-sheet. However, in the computation of income, the assessee has reduced the entire rental income of Rs. 8,90,572/- for separate consideration and rental income from Gala No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the computation provided by assessee (accepted by AO) at Rs. 1,34,08,297/-. It was further argued that the order passed by AO was not at all prejudicial to the interest of revenue. As twin condition of section 263 of the Act are not satisfied. Thus, the order passed u/s 263 of the Act is liable to be set-aside. On the other hand, ld. DR for Revenue vehemently supported the order of ld. CIT. Ld. DR for Revenue further invited our attention to the order of AO passed u/s 143(3) of the Act and pointed out that there is no examination or discussion in respect of the various heads of the income claimed by assessee. The order passed by AO is cryptic and without application of mind which is not only erroneous but substantially prejudicial to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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